Focusing on Digital Has Helped Crocs Break Sales Records
Ecommerce is a powerful force in the world of retail, and few would deny that online is the direction in which the industry as a whole is shifting.
Of course, this shift is not limited to the act of buying and selling the retail products themselves, but also extends to the channels through which brands can display their marketing efforts and engage with their audiences.
Social media is one of the main avenues through which modern brands achieve this and, whatever your personal feelings about the huge tech companies which run these platforms, nobody can doubt the power of these channels when it comes to digital marketing.
This is more than evident in the latest figures from comfortable and casual footwear brand, Crocs which has posted impressive sales figures, boosted by its investment in social media and ecommerce.
Crocs
Long held as the shoe of choice for kitchen staff, hospital workers, and any other industry which involves employees being on their feet for prolonged periods, the Broomfield, Colorado footwear disruptors iconic foam clogs have divided tastes for years.
However, the company’s latest figures suggest it may have somewhat shed its reputation as the polarizing pariah [their words, not mine] of footwear. Partly brough about by the need for casualwear and comfort brought about by the pandemic, but mostly by the company’s focus on digital and social media, and an expansion into Asian markets, Crocs reported $641 million of revenue in the second quarter of 2021, up 93% compared to 2020 and 79% compared to 2019, and projected $1.4 billion sales for the entire year, over 60% growth from 2020.
Now, Crocs is aiming to more than triple that within the next five years. The company is predicting $5 billion in sales by 2026, which translates to a compound annual growth rate (CAGR) of more than 17%, with 50% of those sales expected to come from digital channels, including through Crocs.com and global ecommerce retailers.
"The other major pillar in Crocs’ growth strategy is personalization — namely, increasing sales of Jibbitz, or charms that consumers can clip onto their shoes to make them unique," said President of Crocs Inc, Michelle Poole. "Crocs customers who buy Jibbitz have twice the average lifetime value of those who don’t, and the sale of Jibbitz is more about driving footwear purchases. "We have the ability to double our Jibbitz business and drive incremental market share through additional opportunities in personalization."
Social Media
A cornerstone of the Crocs resurgence has been the way the brand has redefined itself on social media platforms through innovative collaborations and celebrity endorsements.
These collaborations have included rapper Post Malone and luxury brand, Balenciaga. Crocs has also released limited edition styles in partnership with pop superstar. Justin Bieber and his own fashion label, Drew House. To celebrate Pride in 2020, for example, the brand teamed up with model and actor Ruby Rose to release a pair of rainbow-colored Crocs and donating to LGBTQ+ charity GLAAD in honor of the campaign.
During the height of the COVID-19 crisis in 2021, Crocs also used its social media channels to launch its Free Pair for Healthcare campaign. The promotion invited healthcare workers to click on a link to request a pair of comfortable Crocs clogs 100% free of charge. The campaign resulted in Crocs giving away a staggering 860,000 pairs of shoes in just 45 days, contributing to growing awareness of the brand (and relevancy of its product) during the pandemic.
Crocs also discovered it had a cult following on top GenZ social platform TikTok with user generated content including the Shaving Cream Challenge and the Crocs Shoe-Throwing Challenge gaining significant engagement on the video micro-blogging portal.
To make the most of this visibility, Crocs launched its own challenge, which invited users to post what they imagined a pair of Crocs which cost $1,000 would look like. In a single week, Crocs generated 100,000 followers on the platform, and saw 45,000 videos bearing the #ThousandDollarCrocs hashtag created within 36 hours of the challenge’s launch.
"Our Q2 results were exceptional, as we continue to see strong demand for the Crocs brand globally," said Crocs CEO, Andrew Rees. "Second quarter 2021 Revenues nearly doubled versus prior year to $641 million and increased 79% from 2019. Underlying these incredible results is the iconic brand we have built. To continue to feel brand relevance and consideration globally we leveraged digital and social marketing, influencer campaigns and collaborations."
Final Thoughts
Crocs has for a long time battled with a reputation for being desperately uncool and strictly reserved for shift workers. However, with entertaining and innovative collaborations on social media and a sharp focus on digital expansion, the characterful footwear disruptor is seeing amazing success in the post-pandemic world.
You can hear Crocs Head of Global Digital Commerce, Dan Marques, speak at eTail Boston 2022, taking place in August at The Sheraton, Boston.
Download the agenda today for more information and insights.